Bank of Parksville v. Dorn

• Decision Date: 14 November 1923
• Docket Number: 11341.
• Citation: 120 S.E. 72,126 S.C. 368
• Parties: BANK OF PARKSVILLE v. DORN. BANK OF PARKSVILLE v. MCDANIEL.
• Court: South Carolina Supreme Court

120 S.E. 72

126 S.C. 368

BANK OF PARKSVILLE v. DORN.

BANK OF PARKSVILLE v. MCDANIEL.

No. 11341.

Supreme Court of South Carolina

November 14, 1923

Appeal from Common Pleas Circuit Court of Edgefield and Saluda Counties; W. H. Townsend, Judge.

Separate actions tried together by the Bank of Parksville against E B. Dorn and W. McDaniel. Judgments for defendant, and plaintiff appeals. Reversed.

W. K Charles, of McCormick, Sheppard Bros. of Edgefield, and Grier & Park, of Greenwood, for appellant.

J. Wm Thurmond and S. Mc.G. Simkins, both of Edgefield, for respondent.

WATTS J.

These two cases were heard together, and involve the same questions of law and fact materially. The statement of facts in the Dorn Case will be adopted. That statement is:

"On the 15th day of July, 1920, the defendant, E. B Dorn, purchased from the Fisheries Products Company 167 shares of its common stock, and at the same time he delivered to the sellers of the stock his two notes of date July 15 1920, for $1,245 and $1,260, respectively. The notes are payable 'to the order of myself,' and are indorsed by the maker, E. B. Dorn. The agents of the Fisheries Products Company 7 days afterwards, to wit, July 22, 1920, sold these notes to plaintiff, Bank of Parksville, and Bank of Parksville issued to Fisheries Products Company its certificate of deposit in payment of the purchase price of the said notes. The certificate of deposit matured on September 22, 1921. When the certificate of deposit fell due it was presented to the bank for payment by National City Securities Corporation. The certificate bore the indorsement of Fisheries Products Company, and an order of National City Securities Corporation, making it payable to Battery Park National Bank. National City Securities Corporation had other certificates of deposit issued by this bank, and the bank was unable to pay the same, and at maturity of the certificates gave its note to the National City Securities Corporation in payment of the certificates of deposit. When the defendant's notes fell due he refused to pay the same, and in July, 1921, this suit was brought for the purpose of enforcing payment of the notes.

The defendant denied the material allegations of the complaint and set up as a defense that Fisheries Products Company had obtained the notes from him by making to him certain false representations and guarantees in connection with the purchase of the stock, and

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